This document provides an overview of goods and services tax (GST) in India, including its introduction, types of GST (IGST, CGST, SGST, UTGST), rates, scope of supply, composite supplies, mixed supplies, and sections regarding levy and collection under the CGST Act, IGST Act, and UTGST Act. GST is an indirect tax on the supply of goods and services that replaced existing taxes and came into effect on July 1, 2017. The four types of GST are integrated, central, state, and union territory GST.

1. PUNJABI UNIVERSITY PATIALA
DEPARTMENT OF COMMERCE
TAX LAW ASSIGNMENT
TOPIC: LEVY AND COLLECTION OF GST
SUBMITTED TO: SUBMITTED BY:
MS. RIYA KANWAL PREET
CLASS: M.COM
(HONS) 4th SEM
ROLL.NO:
18051245

2. GST- Introduction
Goods and Services Tax (GST) is an indirect tax
used in India on the supply of goods and
services. It is a comprehensive, multistage,
destination-based tax.The tax came into effect
from 1 July 2017 through the implementation of
the One Hundred and First Amendment of the
Constitution of India by the Indian government.
The GST replaced existing multiple taxes levied
by the central and state governments.

3. TYPES OF GST

4. • Integrated Goods and Services Tax or IGST-The
Integrated Goods and Services Tax or IGST is a
tax under the GST regime that is applied on the
interstate supply of goods and services as well as
on imports and exports. The IGST is governed by
the IGST Act. After the collection of taxes, it is
further divided among the respective states by the
Central Government.
• State Goods and Services Tax or SGST- The
State Goods and Services Tax or SGST is a tax
under the GST regime which is applicable on
intrastate transactions. In case of intrastate supply

5. • Central Goods and Services Tax or CGST- The
Central Goods and Services Tax of CGST is a tax
under the GST regime which is applicable on
intrastate (within the same state) transactions. The
CGST is governed by the CGST Act. The revenue
earned from CGST is collected by the Central
Government.
• Union Territory Goods and Services Tax or UTGST-
The Union Territory Goods and Services Tax or
UTGST is the counterpart of SGST which is levied on
the supply of goods and services in the Union
Territories of India. The UTGST is applicable on the
supply of goods and services in Andaman and

6. RATES OF GST

7. SUPPLY
• Scope of supply: Supply includes:
i. All forms of supply of goods or services or
both such as sale, transfer, exchange,
license, lease etc. made for a consideration,
for business.
ii.Import of services for a consideration,
whether or not for business.
iii.The activities referred to in Schedule I.

8. • Supply excludes:
i. Activities referred in Schedule III
ii.Services by way of any activity in relation to a
function entrusted to a Panchayat under
article 243G of the Constitution undertaken by
government or local authority.
iii.Service by way of grant of alcoholic liquor
licence, against consideration in the form of
licence fee or application fee or by whatever
name it is called undertaken by the state

9. SCHEDULE I
• Supply without consideration:
a)Supply between related or distinct person in
the course or futherence of business.
b)Supply by principal to agent.
c)Import of services.
d)Branch transfer.

10. SCHEDULE II
• Supply of goods
a)transfer of title in goods
b)permanent transfer of business assets
c)suplly of goods by unincorporated AOP/BOI
• Supply of services
a)renting
b)construction
c)development,design of IT software
d)agreeing to obligation to refrain from an act or
tolerate an act

11. SCHEDULE III
a) Employer- Employee relationship
b) services by court of law or tribunal
c) functions performed by MP/MLA/Municipalities
or other local bodies
d) services of funeral, burial, crematorium or
mortuary including transportation of a
deceased
e) sale of land and subject to para 5(b) of sch 2,
sale of building
f) actionable claims other than lottery, betting

12. COMPOSITE SUPPLIES
• "Composite supply" is a supply made by a taxable
person to a recipient consisting of two or more
taxable supplies of goods or services or both, or any
combination thereof, which are naturally bundled and
supplied in conjunction with each other in the
ordinary course of business, one of which is a
principal supply.
• Examples - Where goods are packed and transported
with insurance, the supply of goods, packing
materials, transport and insurance is a composite

13. • Essential Elements of a composite supply
a)It is a supply made by a taxable person.
b)It is made to a recipient.
c)It consists of two or more taxable supplies of
goods or services or both or any combination
thereof which are naturally bundled and supplied
in the ordinary course of business.
d)One of the components of the supplies is a
principal or main supply.
• Tax treatment of a composite supply - It shall be
treated as supply of the principal supply.

14. MIXED SUPPLIES
• "Mixed supply" means two or more individual
supplies of goods or services, or any combination
thereof, made in conjunction with each other by a
taxable person for a single price where such supply
does not constitute a composite supply.
• Examples- A supply of a package consisting of
canned foods, sweets, chocolates, cakes, dry fruits,
aerated drinks and fruit juices when supplied for a
single price is a mixed supply. Each of these items
can be supplied separately and is not dependent on
any other. It shall not be a mixed supply if these

15. • Essential Elements of a Mixed supply
a)It is a supply made by a taxable person.
b)It is made to a recipient.
c)It consists of two or more individual supplies of goods
or services or both or any combination thereof.
d)The supply is made for a single price.
e)The supply does not fulfill the parameters of a
composite supply i.e. supply is not naturally bundled
and not supplied in conjunction with each other in the
ordinary course of business
• Tax treatment of a Mixed supply - It shall be treated
as a supply which attracts the highest rate of tax.

16. LEVY AND COLLECTION

17. SEC 9 OF CGST ACT
•Section 9 of CGST Act/SGST Act and Section 5 of
IGST Act are the Charging Sections for the purposes of
levy of GST.
•Levy of central goods and service tax [Section 9(1)] :
a)Under CGST Act, central tax called as the central
goods and services tax shall be levied on all intra-State
supplies of goods or services or both, except on the
supply of alcoholic liquor for human consumption.
b)It shall be levied on the value determined under
section 15 and at such rates, not exceeding 20%, as
may be notified by the Government.

18. • Central tax on petroleum products to be levied from
the date to be notified [Section 9(2)] : The central tax
on the supply of petroleum crude, high speed diesel,
motor spirit (commonly known as petrol), natural gas
and aviation turbine fuel shall be levied with effect
from such date as may be notified by the Government
on the recommendations of the Council.
• Tax payable on reverse charge basis [Section 9(3)] :
The Government may, on the recommendations of
the Council, by notification, specify categories of
supply of goods or services or both, the tax on which
shall be paid on reverse charge basis by the recipient

19. • Tax payable on reverse charge if the supplies are
made to a registered person by unregistered person
[Section 9(4)] :The central tax in respect of the
supply of taxable goods or services to a registered
person shall be paid by such person on reverse
charge basis as the recipient and all the provisions of
this Act shall apply to such recipient as if he is the
person liable for paying the tax in relation to the
supply of such goods or services or both. [Section 9(4)
has been deferred till 30.6.2018]
• Tax payable on intra-State supplies by the electronic
commerce operator on notified services [Section
9(5)] : As per section 2(45) of the CGST Act, 2017,

20. SEC 5 OF IGST ACT
• The provisions under section 5 of the IGST Act are
similar to section 9 of CGST Act except—
a)The word CGST has been substituted by IGST
under IGST Act
b)Under IGST Act, tax called integrated tax is to be
levied on all interState supplies and on goods
imported into India.
c)Maximum rate under section 5(1) of the IGST Act is

21. SEC 7 OF UTGST ACT
• The provisions under section 7 of the UTGST Act
are similar to section 9 of CGST Act except—
a)The word CGST has been substituted by the word
UTGST under the UTGST Act.
b)Under UTGST Act, tax called UT tax is be levied on
all intra-State supplies,
c)Maximum rate 7(1) of UTGST Act is 20%.